Honda reports first loss in decades as it slows EV strategy
DW.com • • general
Key Points:
- Honda reported its first operating loss since 1957, with a loss of 413.4 billion yen ($2.6 billion) due to major write-downs in its electric vehicle (EV) operations, alongside a net loss of 423.9 billion yen.
- The company sold 3.4 million cars globally in the fiscal year ending March, down from 3.7 million the previous year, while its motorcycle sales increased to 22.1 million units, helping to offset losses.
- Honda cited a shift in US government policy, including the removal of EV tax incentives and tariffs on imported vehicles, as significant factors impacting profitability, along with increased competition in China and supply chain pressures from geopolitical tensions.
- The automaker is revising its EV strategy, focusing more on hybrid vehicles and internal combustion engines, reflecting declining EV demand in the US; it canceled plans for two electric cars developed with Sony.
- Despite the losses, Honda forecasts a return to profitability by fiscal year 2027 and remains committed to carbon neutrality and future technology development, with CEO Toshihiro Mibe leading the company’s revival efforts.